Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
Editorials & Other Articles
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Economy
In reply to the discussion: STOCK MARKET WATCH -- Tuesday, 12 June 2012 [View all]Demeter
(85,373 posts)38. Worry for Italy Quickly Replaces Relief for Spain
http://www.nytimes.com/2012/06/12/business/global/monti-struggles-to-keep-italy-from-being-the-next-domino-to-fall.html
Concerns grew on Monday that Italy could be the next victim of Europes financial infection, leading nervous investors to sell Italian stocks and bonds and damping euphoria over a weekend deal to bail out Spains banks. Italian officials privately expressed concern that the 100 billion euros, or $125 billion, that Europe pledged to Spanish banks might not stop the troubles from spreading.
Italys main stock index was Europes worst performer on Monday, a day when United States stocks were also dragged down and investors flocked yet again to the safe harbor of American and German government bonds. Even the Italian prime minister, Mario Monti, a European technocrat who came to office after the euro crisis forced out Silvio Berlusconi last November, has begun to acknowledge the dangers posed to his countrys 1.56-trillion-euro economy ($1.95 trillion).
The main fear is that Italy cannot grow its way out of a recession fast enough to pay a mountainous national debt. Other concerns include the fact that Italy, with the third-largest euro zone economy after those of Germany and France, will have to shoulder a large portion of the bailout bill even as it grapples with its own sharp economic downturn. Because Italy does not have enough economic growth to generate the money itself, the government will probably have to borrow it at high interest rates, adding to an already heavy debt load.
Prices of Italys government bonds reached their lowest level in months. Investors apparently found little assurance that the euro currency union was any closer to solving its underlying problems not with parliamentary elections in Greece this weekend that could determine whether the currency union is strong enough to retain its weakest members...
TO STRENGTHEN THE EUROZONE, YOU HAVE TO CLIP THE WINGS OF THE EUROZONE BANKSTERS...
Concerns grew on Monday that Italy could be the next victim of Europes financial infection, leading nervous investors to sell Italian stocks and bonds and damping euphoria over a weekend deal to bail out Spains banks. Italian officials privately expressed concern that the 100 billion euros, or $125 billion, that Europe pledged to Spanish banks might not stop the troubles from spreading.
Italys main stock index was Europes worst performer on Monday, a day when United States stocks were also dragged down and investors flocked yet again to the safe harbor of American and German government bonds. Even the Italian prime minister, Mario Monti, a European technocrat who came to office after the euro crisis forced out Silvio Berlusconi last November, has begun to acknowledge the dangers posed to his countrys 1.56-trillion-euro economy ($1.95 trillion).
The main fear is that Italy cannot grow its way out of a recession fast enough to pay a mountainous national debt. Other concerns include the fact that Italy, with the third-largest euro zone economy after those of Germany and France, will have to shoulder a large portion of the bailout bill even as it grapples with its own sharp economic downturn. Because Italy does not have enough economic growth to generate the money itself, the government will probably have to borrow it at high interest rates, adding to an already heavy debt load.
There is a permanent risk of contagion, Mr. Monti told an economics conference near Venice over the weekend, speaking by telephone. That is why strengthening the euro zone is of collective interest.
Prices of Italys government bonds reached their lowest level in months. Investors apparently found little assurance that the euro currency union was any closer to solving its underlying problems not with parliamentary elections in Greece this weekend that could determine whether the currency union is strong enough to retain its weakest members...
TO STRENGTHEN THE EUROZONE, YOU HAVE TO CLIP THE WINGS OF THE EUROZONE BANKSTERS...
Edit history
Please sign in to view edit histories.
82 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
RecommendedHighlight replies with 5 or more recommendations
Republican governors believe the way to create jobs is to cut corporate taxes,
tclambert
Jun 2012
#7
Without a major cultural change I think the rush might be for lawn chairs and Coors Lite,
jtuck004
Jun 2012
#20
which pRick Scott is doing in FL (despite the fact that it's the rare company that even pays any)
Roland99
Jun 2012
#77
As Fiscal Slope Negotiations Heat Up, Support for Letting Tax Cuts Expire, From Republicans
girl gone mad
Jun 2012
#19
Considering that Germany's been imposing "Unrealistic" Demands on the Rest of Europe
Demeter
Jun 2012
#28
Banks Booting Families and Leaving Homes to Rot: A Tour of Blighted Homes in Los Angeles
Demeter
Jun 2012
#69
Members of Senate Banking Committee Will Question Their Top Donor: JP Morgan Chase
Demeter
Jun 2012
#73